Correlation Between Western Metal and Southern PublishingMedia
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By analyzing existing cross correlation between Western Metal Materials and Southern PublishingMedia Co, you can compare the effects of market volatilities on Western Metal and Southern PublishingMedia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Western Metal with a short position of Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Southern PublishingMedia.
Diversification Opportunities for Western Metal and Southern PublishingMedia
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Southern is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia and Western Metal is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Western Metal Materials are associated (or correlated) with Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Western Metal i.e., Western Metal and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Western Metal and Southern PublishingMedia
Assuming the 90 days trading horizon Western Metal is expected to generate 1.15 times less return on investment than Southern PublishingMedia. In addition to that, Western Metal is 1.34 times more volatile than Southern PublishingMedia Co. It trades about 0.05 of its total potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.08 per unit of volatility. If you would invest 1,503 in Southern PublishingMedia Co on October 30, 2024 and sell it today you would earn a total of 109.00 from holding Southern PublishingMedia Co or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Western Metal Materials |
| Southern PublishingMedia |
Western Metal and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Southern PublishingMedia
The main advantage of trading using opposite Western Metal and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Southern PublishingMedia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| Western Metal vs. Industrial Bank Co | Western Metal vs. Hangzhou Arcvideo Technology | Western Metal vs. Ningbo Tech Bank Co | Western Metal vs. Citic Guoan Wine |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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